|
New Georgia Law Expands Enforceability of
Non-Competes for Complying Businesses
As you may know, Georgia courts have historically been among the most restrictive when it comes to enforcing non-compete agreements. Many businesses use special narrow agreements with Georgia employees or simply do not use them at all.
In November of 2010, however, the voters of Georgia ratified a constitutional amendment that completely revamps non-compete law in Georgia. The amendment permits the legislature to enact a new law which will greatly expand the enforceability of non-compete agreements when used for valid business purposes. Such a law was passed prior to the constitutional amendment but will need to be re-enacted. A new law has already been introduced and is expected to be enacted soon.
If employers wish to benefit from the new law, they will need to draft agreements that comply with the new law. For existing Georgia employees who are already subject to non-compete agreements, employers will need to offer new agreements, probably with new consideration.
Maslon's national Competitive Practices/Unfair Competition Group provides a full range of legal counseling and litigation services in the areas of non-compete agreement drafting and enforcement, as well as the full range of issues which arise in the competitive sphere, including antitrust, product disparagement, trade secrets, non-solicitation, patent, trademark and copyright. If we can be of service, please contact any of the members of our team.
|
